iShares: Tech ETFs to Access Overseas Growth

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Considering the lower economic growth rates in the U.S., stock exchange traded funds that hold companies with overseas exposure, such as the technology sector, will be in the best position to grow in the coming years, according to iShares analysts.

While the U.S. will eke out growth of about 2% over the next couple of years, the economy will still be susceptible to short-term risks, like the so-called fiscal cliff.

“Investors should build portfolios that are robust to a prolonged period of slow growth,” Russ Koesterich, Managing Director, iShares Chief Investment Strategist, said in a research note. “Technology is another potential long term play as it has the highest percentage of international sales of any sector, and is therefore the least exposed to a regime of slow growth in the United States.”

The technology sector, among the ten economic sectors, has the most exposure to international sales, with 60.4% of computer hardware and 84.4% of semiconductor sales in overseas markets.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.